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Shkruar nga Diplomatico | Pamfleti.net 
Brussels should prepare for trade war if US continues pressure...
Donald Trump is returning to his aggressive tariff policy, once again confronting the European Union with the challenge of reacting decisively or giving in to the former US president's increasingly fierce demands. Trump's economic "Liberation Day", scheduled for August 1, threatens new reciprocal tariffs of up to 30% on countries that fail to reach an agreement with Washington, among which the EU is its main trading partner.
In April of this year, Trump partially withdrew the tariffs, following the negative reaction of the markets, but the threat has now returned, increasing pressure on Brussels to show that it is ready to use its anti-tampering arsenal.
The EU between negotiations and resistance
Brussels has shown uncertainty in its strategy. Germany, initially in favor of a deal, is now leaning towards a tougher approach. The EU's biggest mistake has been trying to negotiate a traditional deal, which seems impossible in the face of Trump who prefers to impose conditions.
While the UK has agreed to a basic tariff of 10%, the EU, with its large trade surplus, finds a similar deal impossible. The European Commission, which has €93 billion in retaliatory tariffs at its disposal, has so far been reluctant to use its most effective non-tariff instruments, but this situation appears to be changing.
The EU's anti-austerity arsenal
The EU's new Anti-Bribery Instrument could give Brussels enough power to act decisively. Concrete actions could include excluding US companies from public procurement in Europe, suspending equivalent regulatory treatment for US financial firms, and taxing advertising revenue for US tech giants.
If Europe does not use these strong measures now, the message to Trump will be that Brussels has neither the will nor the ability to defend itself effectively.
Trump, the EU and NATO uncertainties
There are fears that Trump could retaliate on European security and Ukraine issues, but he is currently limited in what he can do. The deal on NATO spending has already been reached, and his recent rapprochement with Ukraine comes more in response to Russia’s disrespect for his diplomatic efforts than as a gesture of generosity.
The biggest problem remains the unification of EU member states, with Italy and some eastern countries still hesitant in the face of Trump. But the moment has now come for the EU to show its strength. / Pamphlet
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